The Euro couldn’t hold gains against the USD on Yesterday’s session, dropping 0.3% to 1.1745 in the US session after trading as high as 1.1806 during the Asian session and European open.
It was more of a USD strength story, after the relatively positive results from the US-North Korea summit, where “denuclearisation” was promised but few other details were given and Consumer Price Index coming as expected in the US, the USD gained on the back of rumours surrounding the next FED meeting. The WSJ reported that Powell is thinking of having a press conference after every FOMC meeting, suggesting they’ll be live and open to discussion which the market apparently interpreted as a sign of more rate hikes to come this year, maybe even 4 instead of the 3 priced already.
A weaker than expected ZEW reading didn’t help the Euro either. Traders will be looking closely to the next US and EU Central Bank meetings this week, from a technical perspective 1.1730 (21-day-moving-average) and 1.1840 (June 7 high) should act as short term support/resistance